I like this idea and it’s the best one I could think of as well with the least drawbacks to Nu however it’s not easy to arrange. It relies on finding multiple custodians that 1. Essentially already mint full time + 2. Have already build up enough trust that we can store large amounts of BKS with them without significant counterparty risk and 3. Are willing to provide such a service for a very low fee (maybe a few% of the BKS minted?)

Also in such a case (however unlikely) that they do end up taking off with the collateral how would we salvage such a situation, would Nu repay for any BKS lost?

@Dhume, did you ever get your BKS back?
My understanding that the contract has not ended, if you didn’t get your BKS back.

Dhume:

For this service @Dhume will charge a 300 NBT fee per month, totaling 900 Nubits per 3 month service period. @Dhume will take payment after every 3 month operation period by requesting a grant to be passed at the end of the operation period.

If you didn’t get your collateral back, what about the fee of quarterly 900 NBT?
It should be easy to find your payments somewhere in the books.
Oh no wait, it’s all ultra transparently written in the blockchain.

I vaguely recall the default fee is in the range of 0.01-0.02 per kb. So the fee should be somewhere between 16-32 BKS, plus a little. I couldn’t find a definitive answer after skimming the BCE sourcecode, but it seems the fee is voted on per block so one might need to check with the client.